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Indexed Annuity Sales Break Records

Wink, Inc. Releases 2nd Quarter, 2019 Deferred Annuity Sales Results

Des Moines, Iowa. August 26, 2019- Wink’s Sales & Market Report, the insurance industry’s #1 resource for indexed annuity sales data since 1997, now reports on all deferred annuities. Sixty-one indexed annuity providers, 55 fixed annuity providers, 68 Multi-year guaranteed annuity (MYGA) providers, 10 structured annuity providers, and 46 variable annuity providers participated in the 88th edition of Wink’s Sales & Market Report for 2nd Quarter, 2019.

Total second quarter sales for all deferred annuity sales were $58.2 billion; an increase of 4.9% when compared to the previous quarter.

Noteworthy highlights for all deferred annuity sales in the second quarter include Jackson National Life ranking as the #1 carrier overall for deferred annuity sales, with a market share of 8.2%. AIG followed in second place, while Lincoln National Life, Allianz Life, and AXA US rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the #1 selling deferred annuity, for all channels combined in overall sales.

Total second quarter non-variable deferred annuity sales were $33.1 billion; down 0.9% when compared to the previous quarter and up 16.3% when compared to the same period last year. Non-variable deferred annuities include the indexed annuity, traditional fixed annuity, and MYGA product lines.

Noteworthy highlights for non-variable deferred annuity sales in the second quarter include AIG ranking as the #1 carrier overall for non-variable deferred annuity sales, with a market share of 9.4%. Global Atlantic Financial Group moved into second place, while Allianz Life, Athene USA, and American Equity Companies rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity, an indexed annuity, was the #1 selling non-variable deferred annuity, for all channels combined, in overall sales.

Q2 Variable deferred annuity sales were $25.1 Billion

Total second quarter variable deferred annuity sales were $25.1 billion; an increase of 13.9% when compared to the previous quarter. Variable deferred annuities include the structured annuity and variable annuity product lines.

Noteworthy highlights for variable deferred annuity sales in the second quarter include Jackson National Life ranking as the #1 carrier overall for variable deferred annuity sales, with a market share of 15.0%. AXS US took second place as Lincoln National Life, Prudential and Brighthouse Financial rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity, a variable annuity, was the #1 selling variable deferred annuity, for all channels combined, in overall sales.

Indexed annuity sales for the second quarter were $19.6 billion; up 10.9% when compared to the previous quarter, and up 13.5% when compared with the same period last year. This was a record-setting quarter for indexed annuity sales, topping the prior 4th quarter 2018 record by 2.5%. Indexed annuities have a floor of no less than zero percent and limited excess interest that is determined by the performance of an external index, such as Standard and Poor’s 500®.

Strongest Quarter Ever For Indexed Annuities

“This was the strongest quarter ever for indexed annuity sales!” exclaimed Sheryl J. Moore, President and CEO of both Moore Market Intelligence and Wink, Inc. “However, the industry shouldn’t take this as an indication of the next two quarters’ performance; the drop in the Fed Funds Rate and consequent rate reductions are going to make topping these high benchmarks difficult,” she continued.

Noteworthy highlights for indexed annuities in the second quarter include Allianz Life retaining their #1 ranking in indexed annuities, with a market share of 11.9%. Athene USA held the second-ranked position while AIG, American Equity Companies, and Nationwide rounded-out the top five carriers in the market, respectively. Allianz Life’s Allianz 222 Annuity was the #1 selling indexed annuity, for all channels combined, for the twentieth consecutive quarter.

Traditional fixed annuity sales in the second quarter were $983.2 million; down 9.5% when compared to the previous quarter, and up 21.1% when compared with the same period last year. Traditional fixed annuities have a fixed rate that is guaranteed for one year only.

Noteworthy highlights for traditional fixed annuities in the second quarter include Great American Insurance Group ranking as the #1 carrier in fixed annuities, with a market share of 12.6%. Modern Woodmen of America ranked second while, Jackson National Life, Global Atlantic Financial Group and OneAmerica rounded-out the top five carriers in the market, respectively. Forethought Life ForeCare Fixed Annuity was the #1 selling fixed annuity for the quarter, for all channels combined.

Multi-year guaranteed annuity (MYGA) sales in the second quarter were $12.4 billion; down 15.0% when compared to the previous quarter, and up 20.5% when compared to the same period last year. MYGAs have a fixed rate that is guaranteed for more than one year. “Sales of MYGAs dropped significantly this quarter, and the remainder of the year’s sales are going to continue to be challenged,” exclaimed Moore.

Noteworthy highlights for MYGAs in the second quarter include AIG ranking as the #1 carrier, with a market share of 13.0%. Global Atlantic Financial Group moved into the second-ranked position, as New York Life, Massachusetts Mutual Life Companies, and Delaware Life rounded-out the top five carriers in the market, respectively. Forethought Life’s SecureFore 5 Fixed Annuity was the #1 selling multi-year guaranteed annuity for the second consecutive quarter, for all channels combined.

Q2 Structured Annuity Sales: $4 Billion

Structured annuity sales in the second quarter were $4.1 billion; up 17.0% as compared to the previous quarter, and up 66.6% as compared to the previous year. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts. Moore commented, “Structured annuity sales increased more than any other single line of business this quarter. These double-digit sales increases are likely not going to end soon with nearly every company doing R&D on this product line.”

This was the strongest quarter ever for indexed annuity sales, however, the drop in the Fed Funds Rate and consequent rate reductions are going to make topping these high benchmarks difficult

Noteworthy highlights for structured annuities in the second quarter include AXA US ranking as the #1 carrier in structured annuities, with a market share of 31.4%. Brighthouse Life’s Shield Level Select 6-Year was the #1 selling structured annuity for the sixth consecutive quarter, for all channels combined.

Variable annuity sales in the second quarter were $20.9 billion; an increase of 13.3% as compared to the previous quarter. Variable annuities have no floor, and potential for gains/losses that are determined by the performance of the subaccounts that may be invested in an external index, stocks, bonds, commodities, or other investments.

Noteworthy highlights for variable annuities in the second quarter include Jackson National Life ranking as the #1 carrier in variable annuities, with a market share of 18.0%. Prudential ranked second, while Lincoln National Life, AXA US, and Nationwide rounded-out the top five carriers in the market, respectively. Jackson National’s Perspective II Flexible Premium Variable & Fixed Deferred Annuity was the #1 selling variable annuity for the second consecutive quarter, for all channels combined.

 

 

 

 

Wink currently reports on indexed annuity, fixed annuity, multi-year guaranteed annuity, structured annuity, variable annuity, and multiple life insurance lines’ product sales. Sales reporting on additional product lines will follow at some point in the future.
For more information, go to www.WinkIntel.com
Wink, Inc. is the company behind the most comprehensive life insurance and annuity due-diligence tools, AnnuitySpecs and LifeSpecs at www.WinkIntel.com. Wink, Inc. is the distributor of the quarterly Wink’s Sales & Market Report. Serving as the insurance industry’s #1 resource of indexed insurance product sales since 1997, this report provides sales by product, company, crediting method, index, distribution, surrender charge period, and more. Wink’s Sales & Market Report expanded to cover all deferred annuity products in 2015, all deferred variable annuity products in 2019 and all non-variable cash value life insurance products in 2017.
The staff of Wink, Inc. has the combined experience of more than 175 years working with insurance products, more than a decade of which is specifically in competitive intelligence. Based in Des Moines, Iowa, the firm offers competitive intelligence and market research in the life insurance and annuity industries; serving financial services professionals, distributors, manufacturers, regulators, and consultants on both a domestic and global basis.
Sheryl J. Moore is president and CEO is the guiding force behind Wink, Inc. Ms. Moore previously worked as a market research analyst for top carriers in the life insurance and annuity industries. Her views on the direction of the market are frequently heard in seminars and quoted by industry trade journals.